Jet Fuel Price Hike: The impact of the Iran war is deepening. Aviation fuel in India has now become 25% more expensive,according to the Indian government’s Petroleum Ministry . The ministry stated that the price of aviation turbine fuel (ATF) has more than doubled in the international market. The increase in ATF prices is also likely to impact air travel,as airlines may increase ticket prices to recoup their increased costs.
Inflation expected to more than double from April 1
The Ministry of Petroleum announced the ATF price hike on its Instagram handle. It stated,“ATF prices in India have been free from government control since 2001. Since then,they have been determined monthly using a formula based on international standards. Due to the closure of the Strait of Hormuz and the unusual circumstances in the global fuel market,ATF prices in the domestic market were expected to increase by more than 100% from April 1.”
The ministry further said that the state-owned companies have decided to bear a major part of this themselves to minimize the burden on the airlines. It said,“To protect the cost of domestic travel from the sharp increase in international prices,the PSU oil marketing companies of the Ministry of Petroleum,in consultation with the Ministry of Civil Aviation,have implemented a partial and phased increase of only 25% (Rs 15/litre) on the airlines.”
The ministry stated that while ATF prices were only increased by 25% for flights operating within India,flights operating international routes will not receive any discount on the increased prices. The ministry stated that since airlines purchase ATF at higher prices abroad,they will have to pay the same international rates in India.
Domestic travel will be expensive,foreign travel will be very expensive?
As mentioned above,the government has agreed to bear a 75% increase in ATF rates for domestic flights,but the 25% increase will certainly impact ticket prices. Of course,there’s no sign of a dramatic increase in domestic airfares,while there are concerns about this for international routes.
ATF prices in India were deregulated in 2001 and are revised on monthly basis based on a formula of international benchmarks. Due to the closure of Strait of Hormuz and extraordinary situation in global energy markets,price of ATF for domestic markets was expected to increase by…
— Ministry of Petroleum and Natural Gas #MoPNG (@PetroleumMin) April 1,2026
